The Enforcement Directorate (ED), India’s central agency handling money laundering cases under the Prevention of Money Laundering Act (PMLA), has been facing both political and judicial scrutiny. While the opposition frequently alleges misuse of the ED for political vendettas, recent Supreme Court interventions have brought the agency’s functioning and conviction rates into sharp focus.

1. “Cannot Act Like a Crook” – Supreme Court’s Stern Rebuke

• August 2025: During hearings on review petitions challenging the 2022 Vijay Madanlal Choudhary (VMC) judgment (which upheld key powers of the ED under PMLA), the Supreme Court strongly cautioned the agency:

  • The bench of Justices Surya Kant, Ujjal Bhuyan, and N. Kotiswar Singh stated, “You (ED) cannot act like a crook. You have to work within the four corners of law. There is a difference between law-enforcing authorities and law-violating bodies.”

  • The Court cited government data that out of 5,000+ PMLA cases registered in the previous five years, there were fewer than 10 convictions, questioning the quality of investigations and prolonged custodial detentions.

  • The Court suggested the need for special courts to ensure day-to-day trials, addressing delays and prolonged incarceration.

2. Karnataka MUDA Land Allotment Case: “Let Political Battles Be Fought Before the Electorate”

• July 21, 2025: In the high-profile Mysore Urban Development Authority (MUDA) case involving Karnataka Chief Minister Siddaramaiah’s wife, the Supreme Court dismissed the ED’s appeal against a Karnataka High Court order quashing proceedings.

  • CJI BR Gavai said: “Let political battles be fought before the electorate. Why are you being used for it?”

  • The court’s remarks implied concern about the ED being used as a tool for political disputes, urging restraint and warning against overreach.

3. Delhi Liquor Policy Case: On Arvind Kejriwal’s Bail

• July 2024: While granting Delhi Chief Minister Arvind Kejriwal interim bail in the liquor policy money laundering case, the Supreme Court criticized ED’s arrest and investigation procedures.

  • The Court stressed that the ED cannot adopt a “pick and choose” approach and emphasized the need for uniformity and legal standards in arrests and investigations.

4. Jharkhand Illegal Mining Case: Remarks During Hemant Soren’s Bail Proceedings

• June-July 2024: In the case against former Jharkhand CM Hemant Soren, the Supreme Court warned the ED about repeatedly filing supplementary chargesheets to prolong incarceration without trial. It cautioned the agency against procedural misuse and, ultimately, upheld the Jharkhand High Court’s well-reasoned decision to grant Soren bail, hinting further scrutiny could create trouble for the ED.

5. Broader Context: The Expansion of ED’s Powers

• 2019 Onward: The ED’s powers were significantly expanded through amendments to the PMLA under the Modi government, allowing the agency to directly file FIRs, arrest, and attach properties even before investigations or charge sheets from other agencies. This broadening of jurisdiction has been a focal point for both political criticism and judicial oversight.

Summary Table of Major Supreme Court Criticisms of the ED

The Supreme Court, while upholding the ED’s legal authority, has repeatedly urged the agency to act within the law, improve its investigation standards, and avoid being an instrument for political battles. It has flagged the low conviction rate under PMLA as evidence of either shoddy investigations or misuse of detention powers, emphasizing that prolonged custody cannot substitute for substantive justice.